USF Contribution Factor Declines Slightly to 17.1 Percent


The FCC’s Office of Managing Director (OMD) has announced that the proposed universal service contribution factor for the third quarter of 2015 will be 0.171 or 17.1 percent. This is a .3 percent decrease from the 17.4 percent contribution factor that was used for the second quarter of 2015. OMD projects that the total collected interstate and international end-user telecommunications revenues for the third quarter of 2015 will be $15.05 billion, while the projected revenue needed to fund all four universal service fund mechanisms in the first quarter of 2015 is $2.170 billion. The projected total demand and expenses for each universal service fund support mechanism for the second quarter of 2015 are as follows: Schools and Libraries – $619 million; Rural Health Care – $68 million, High-Cost – $1.139 billion; and Low Income – $345 million. If the FCC takes no action on the proposed contribution factor within 14 days following its announcement, the rate will be declared approved.

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